Correlation Between Canaf Investments and Helios Fairfax
Can any of the company-specific risk be diversified away by investing in both Canaf Investments and Helios Fairfax at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Canaf Investments and Helios Fairfax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and Helios Fairfax Partners, you can compare the effects of market volatilities on Canaf Investments and Helios Fairfax and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Canaf Investments with a short position of Helios Fairfax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and Helios Fairfax.
Diversification Opportunities for Canaf Investments and Helios Fairfax
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canaf and Helios is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Helios Fairfax Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Fairfax Partners and Canaf Investments is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Canaf Investments are associated (or correlated) with Helios Fairfax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Fairfax Partners has no effect on the direction of Canaf Investments i.e., Canaf Investments and Helios Fairfax go up and down completely randomly.
Pair Corralation between Canaf Investments and Helios Fairfax
Assuming the 90 days horizon Canaf Investments is expected to under-perform the Helios Fairfax. In addition to that, Canaf Investments is 1.24 times more volatile than Helios Fairfax Partners. It trades about -0.37 of its total potential returns per unit of risk. Helios Fairfax Partners is currently generating about 0.06 per unit of volatility. If you would invest 235.00 in Helios Fairfax Partners on November 28, 2024 and sell it today you would earn a total of 6.00 from holding Helios Fairfax Partners or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaf Investments vs. Helios Fairfax Partners
Performance |
| Timeline |
| Canaf Investments |
| Helios Fairfax Partners |
Canaf Investments and Helios Fairfax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and Helios Fairfax
The main advantage of trading using opposite Canaf Investments and Helios Fairfax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments position performs unexpectedly, Helios Fairfax can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Helios Fairfax will offset losses from the drop in Helios Fairfax's long position.| Canaf Investments vs. Globex Mining Enterprises | Canaf Investments vs. Metalero Mining Corp | Canaf Investments vs. Kootenay Silver | Canaf Investments vs. Dream Office Real |
| Helios Fairfax vs. Renoworks Software | Helios Fairfax vs. AGF Management Limited | Helios Fairfax vs. Richelieu Hardware | Helios Fairfax vs. Brookfield Asset Management |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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